Supported by our pristine balance sheet and strong cash flow, Air Products has launched a disciplined capital deployment program which will generate significant growth. We expect increasing focus on sustainability will make hydrogen an important source of energy and the need to improve productivity and better the environment will drive additional projects. Furthermore, the rising living standard around the world, particularly in the emerging markets, will also raise the overall demand for our products. We see significant opportunities in executing projects focusing on serving energy, environment and emerging markets.
Meanwhile, we will work to maintain our lead as the most profitable industrial gas company in the world by focusing on our base business. Over the last five years, our EBITDA margin has expanded over 1500 basis points and our EPS has grown 13% annually. Air Products has more than half of our revenue in the very stable on-site business model, far greater than our competition, offering stability in uncertain times. We have consistently grown our earnings year-over-year for over twenty consecutive quarters, demonstrating the stability of our business and the success of our capital deployment. As our profits improve with additional projects on-stream, our stability will also strengthen as these projects increase the proportion of our on-site business. At Air Products, we intend to leverage this unique combination of growth, profitability and stability to deliver more than 10% EPS improvement per year over the long term.
Seifi Ghasemi, Chairman, President and CEO
Different growth drivers will determine the future growth of our merchant and on-site businesses. The merchant business, including liquid bulk and packaged gases, will grow with local manufacturing activities. The growth of the on-site business will be driven by new projects and customer outsourcing, with excellent opportunities for significant investments. Air Products expects to commit more than $18B between 2018–2022, funded by its strong cash flow and ample borrowing capacity. These new investments will enable the company to accelerate its future growth.
These investment opportunities are driven by the demand for additional energy, the desire for a better environment and the growth of the emerging markets. At Air Products, we have adopted the mantra - Gasification “Now”, CO2 Capture “Tomorrow” and H2 for Mobility “The Day After Tomorrow” as our roadmap. Leading this capital deployment strategy is gasification, where proprietary technologies and in-house expertise make Air Products the clear leader. Next, our experience and knowhow to capture CO2 emission for our customers can drive significant project growth. Longer term, we believe H2 can play an important part of the world’s future energy needs